inheritance tax
inheritance tax
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Calculating Inheritance Tax
Before the Grant of Representation is obtained it is necessary to value the estate of the deceased and to identify any Inheritance Tax due. The correct Inheritance Tax form must be identified and correctly completed and submitted to HM Revenue & Customs. As part of the Grant of Probate application you must prove either that you have paid any Inheritance Tax due, or that there is none to pay.
Every person has an Inheritance Tax- free allowance on death. The threshold at which Inheritance Tax is due is called the nil rate band, above which Inheritance Tax is payable at 40%."
|
Tax Year |
Nil Rate band |
|
2008-2009 |
£312,000 |
|
2009-2010 |
£325,000 |
|
2010-2011 |
£325,000 |
Importantly, spouses or civil partners are able to transfer the unused portion of their “nil-rate band” to the surviving spouse or partner to use on their death. Care needs to be taken in order to accurately prove when any unused portion of the nil-rate band transfers from one spouse to another.
For more information call 0845 602 1416, quote:PYY8